By: E&P Staff
Philadelphia Newspapers LLC’s employee pension plans have agreed to accept $1.5 million to settle their claims against the bankrupt media company, The Philadelphia Inquirer reports.
Seven union pension plans had claimed they were owed $12 million to meet funding shortfalls that had built up since the company — which is now under new ownership and includes the Inquirer, the Philadelphia Daily News and Philly.com — filed for bankruptcy in early 2009.
As a result of the settlement the pension plans agreed to drop their appeals of the reorganization plan, which absolves the new owners of responsibility for keeping the pensions funded in the future, according to the Inquirer.
Philadelphia Newspapers’ new owners have received concessions from the unions, including wage reductions, furloughs, longer workweeks and changes in work rules. The company’s largest union, the Newspaper Guild, has scheduled a ratification vote for next Tuesday.